Procter & Gamble (PG) stock is trading notably lower Tuesday after the consumer products giant reported fiscal fourth-quarter earnings results that were mixed compared with analysts' expectations.
In the three months ended June 30, P&G's revenue declined 0.1% year-over-year to $20.5 billion due to a 2% unfavorable foreign exchange impact. This offset a 1% rise in volume and a 1% increase in prices. The company said its earnings per share (EPS) improved 2.2% from the year-ago period to $1.40.
"Fiscal year 2024 was another year of strong results for P&G," said Procter & Gamble CEO Jon Moeller in a statement. "The team met or exceeded our going-in plans for organic sales growth, core EPS growth, cash generation and cash returned to shareowners in a challenging economic and geopolitical environment."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Wall Street, meanwhile, was anticipating revenue of $20.7 billion and earnings of $1.37 per share, according to Yahoo Finance.
"As we look forward to fiscal 2025, we expect to deliver strong organic sales growth, EPS growth and free cash flow productivity – each in-line with our long-term growth algorithm," Moeller said.
For fiscal 2025, Procter & Gamble is targeting revenue growth in the range of 2% to 4%. It expects earnings per share to arrive between $6.91 to $7.05, which is in-line with analysts' forecasts for 3% revenue growth and earnings of $6.97 per share.
Is Procter & Gamble stock a buy, sell or hold?
Heading into Tuesday's session, Procter & Gamble was one of the better-performing Dow Jones stocks this year, up 18.2% on a total return basis (price change plus dividends).
As a result, Wall Street is bullish on the blue chip stock. According to S&P Global Market Intelligence, the average analyst target price for PG is $174.68, representing an upside of more than 9% from current levels. Additionally, the consensus recommendation is Buy.
Speaking for the bulls is UBS Global Research analyst Peter Grom, who has a Buy rating on PG. While Grom did not expect the company's fiscal Q4 results to be a positive catalyst for the shares amid lagging top-line growth, he has "high conviction in P&G being able to deliver on-algorithm growth in fiscal 2025, which should drive continued outperformance in our view."
Grom has an above-average price target of $191 on Procter & Gamble.
Related Content
- Best Dividend Stocks to Buy for Dependable Dividend Growth
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
The Me-First Rule of Retirement SpendingFollow the 'Me-First" rule and you won't have to worry about running out of money when the stock market goes south.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
